by Isi Esene

The Federal Government has expressed its willingness to the support the Central Bank of Nigeria in the introduction of the contentious N5ooo note.

The government’s position was made known today by the minister of Economic Planning, Dr. Shamsudeen Usman at the conclusion of the Economic Management Team meeting in Abuja.

According to reports, he said, “Obviously, the discussion today was basically to endorse. Mr. President had already approved; that is the only requirement by law. The CBN is to propose and Mr. President is to approve. And since Mr. President has approved, really what is important is to just explain. I personally had some concerns about the coins but since some discussion with the CBN governor, he has actually clarified that even the media didn’t get it.”

On the argument put forward by observers that the introduction of the N5,000 note will lead to inflation, Usman said “There is absolutely no link. I am an economist. I have been deputy governor operations of the Central Bank. In the last review of the introduction of N1000 note and the various coins I was deeply involved, it was my responsibility at the central bank. There is absolutely no link between inflation and the currency denomination.

“The coins are being introduced on an introductory basis so that if people accept them and are using them, then gradually they will withdraw the other notes but they will run concurrently with the notes. Those were my concerns initially because you remember during my time in the CBN, we introduced the one naira and two naira coins. Unfortunately, they were not utilized at all. Part of that is really the value of one naira and two naira today. What can you buy?”

The minister also reacted to insinuations in various quarters that the high denomination note will encourage money laundering and further promote corruption.

“It is an area that I obviously know nothing about. I think people alleged that part of that corruption is being done in dollars. A $100 bill is N16,000 and N5000 note will be $30. So, which one is bigger to carry if you are doing corruption?” Usman asked rhetorically.

“So, I don’t think it is necessarily going to increase the level of corruption. Those doing corruption will probably find that too small. $100 bill is still bigger than the N5,000 note”, the minister added.

Meanwhile, the opposition against the planned introduction of the N5000 has been taken to the streets under the #OccupyCBN banner which is spearheaded by a former House of Representatives member, Mr. Dino Melaye.

Earlier today, Melaye and other protesters reportedly braved the early morning showers in Abuja to make a strong presence at the Central Bank of Nigeria (CBN) headquarters.

It appears the stage is set for a showdown between the CBN and those opposed to its currency review policy.